I have an opportunity to build a new duplex on a lot in an appreciating area. I'd appreciate some expert advice on what the best financing strategy may be. I don't have 20% to put down (could maybe put 10% of total cost), so I had initially through FHA (I will live in the property) construction loan, however now I am realizing the FHA loan only allows financing for 1 unit dwellings.
Does anyone else see a way to do this with low money down? Working with a private bank to see about 10% down with interest only until the property is built. Are there other alternatives? Is it possible to buy the lot with FHA loan ($260k PP) and then get a separate construction loan ($300k total) that I put 10-20% down?
Hi @Brice McKee - Chris Motal at loan Depot is a great contact for alternative loans. You can find his contact info at this link https://www.loandepot.com/loan-officers/cmotal
For new construction you're going to have to put up at least 20% no matter what you do.
@Jarrod Covey Thank you, I'll reach out and see if there is anything they can do.
@Antoine Martel Some family of mine have recently started construction on a new build with less than 15% down in the same area. I'm working with that lender but not sure I'll qualify for the same structure, but appreciate your feedback.
Find an equity partner to help with the financing or sell the deal and take your money up front!